Bitcoin News Today: Strategy Acquires 6,220 BTC for $739.8M Boosting Holdings to 607,770

Strategy, a company led by Michael Saylor, has recently increased its Bitcoin holdings by acquiring an additional 6,220 BTC. This purchase, made over six days, cost approximately $739.8 million in cash, with an average price of $118,940 per coin. The acquisition has brought Strategy's total Bitcoin holdings to 607,770 BTC, valued at around $71 billion. This makes Strategy's Bitcoin treasury one of the largest cash-equivalent reserves among S&P 500 companies, positioning it just behind General Motors and ahead of ExxonMobil.

Strategy's approach to regular Bitcoin accumulation has influenced over 140 other public firms globally to adopt similar strategies. The company has committed to steady BTC purchases, typically announced on Mondays, funded through operating cash, share sales, and convertible debt. This strategy has set a precedent for other public companies, with major firms such as Marathon Digital Holdings, Riot Platforms, Twenty One, and Metaplanet following Strategy's lead. Despite this growth in corporate adoption, Strategy maintains its lead, holding nearly 3% of Bitcoin's total capped supply of 21 million.

To further expand its Bitcoin holdings, Strategy is focusing on increasing its preferred equity sales with a target of around $500 million. The company has announced an IPO of 5 million shares at $100 each, raising a total of $500 million. This offering is part of Strategy's broader capital strategy to expand Bitcoin holdings while maintaining flexibility for dividend adjustments. The company's Bitcoin-focused treasury model has not only influenced other firms but also solidified its position as the leading corporate Bitcoin holder.

Strategy has been recording significant increases in its shares. Since the market closure on Monday, it has unveiled a 47% increase in its shares, generating $119 billion in revenue. This is essential in adding up its Bitcoin holdings as the shares have generated more than $71 billion worth of BTC. Additionally, its common shares surged by 0.4% the same day, trading at $428 each after normal market hours. In the meantime, Strategy has vowed to increase its focus on its new preferred stock compared to the firm’s common and Strike and Stride preferred stock. However, the company will initiate this once it is done with its convertible bonds and the Strife preferreds issued earlier.

Notably, preferred equity offers an adjustable-rate security essential in raising funds to acquire more Bitcoin. Following recent announcements, the biggest Bitcoin corporate holder stated that it offers shares of Series A Perpetual Stretch preferred stock worth $5 million, accompanied by a 9% dividend rate. Currently, the preferred shares are being offered in a range of $90 to $95 per share, a discount of 10% as it was initially offered at $100 each. In an X post, Michael Saylor stated that Strategy provides $STRC “Stretch”, a new type of Perpetual Preferred Stock, through an IPO for certain investors.

Stretch securities will take up a new approach compared to other preferred strategies. To illustrate, they will be subjected to cumulative dividends, and the dividend rate will not be fixed. This is because Michael Saylor’s company can shift the rates at the beginning of every month. Furthermore, the dividend rate can be raised to any figure. In case of a decrease, a different approach will be considered. The condition set is that the maximum decrease a dividend rate should be subject to is 0.25% annually or in the one-month SOFR rate.

Strategy's Bitcoin holdings capability has positioned it to control 3% of the total BTC issued in the crypto ecosystem. The company’s holdings were disclosed by the U.S. Securities and Exchange Commission (SEC), revealing that as of the week ending July 20, it owned 6,220 BTC—valued at approximately $739.8 million. When this recent company’s Bitcoin acquisition was added to its total BTC holdings, the figure surged to 607,770 BTC holdings. This adds up to nearly 3.05% of the total 19.9 million tokens issued in the crypto ecosystem. This collection is worth around $72 billion. The company has used common and preferred shares and debt to fund this Bitcoin purchase. Strategy’s purchase of more Bitcoin aims to protect itself from inflation. The company’s digital asset accumulation started way back in 2020.